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"Fiscal 2018 is off to a very solid start, as we saw strong financial
results and continued to make progress on our strategic plan. During the
quarter, we leveraged our platform as a service strategy to further
enhance our solution offerings and enhance the value we bring to our
clients. Furthermore, the significant modifications we've made to our
business model will simplify the process and increase the ease of
partnering with NextGen going forward. I feel very confident in our
position within the market and our ability to drive bookings growth in
the back half of fiscal 2018," commented
Revenues for the fiscal 2018 first quarter of
On a GAAP basis, fully diluted earnings per share was
Fiscal 2018 Financial Outlook
For the fiscal year 2018, the Company is reiterating its revenue outlook
of a range of
Corporate Event
In other news,
Conference Call Information
About
SAFE HARBOR PROVISIONS FOR FORWARD-LOOKING STATEMENTS
This news release may contain forward-looking statements within the
meaning of the federal securities laws, including but not limited to,
statements regarding future events, developments in the healthcare
sector and regulatory framework, the Company's future performance, as
well as management's expectations, beliefs, intentions, plans, estimates
or projections relating to the future (including, without limitation,
statements concerning revenue, net income, and earnings per share).
Risks and uncertainties exist that may cause the results to differ
materially from those set forth in these forward-looking statements.
Factors that could cause the anticipated results to differ from those
described in the forward-looking statements and additional risks and
uncertainties are set forth in Part I, Item A of our most recent Annual
Report on Form 10-K and subsequently filed Quarterly Reports on Form
10-Q, including but not limited to: the volume and timing of systems
sales and installations; length of sales cycles and the installation
process; the possibility that products will not achieve or sustain
market acceptance; seasonal patterns of sales and customer buying
behavior; impact of incentive payments under The American Recovery and
Reinvestment Act on sales and the ability of the Company to meet
continued certification requirements; the development by competitors of
new or superior technologies; the timing, cost and success or failure of
new product and service introductions, development and product upgrade
releases; undetected errors or bugs in software; product liability;
changing economic, political or regulatory influences in the health-care
industry; changes in product-pricing policies; availability of
third-party products and components; competitive pressures including
product offerings, pricing and promotional activities; the Company's
ability or inability to attract and retain qualified personnel; possible
regulation of the Company's software by the
USE OF NON-GAAP FINANCIAL MEASURES
This news release contains certain non-GAAP (Generally Accepted
Accounting Principles) financial measures, which are provided only as
supplemental information. Investors should consider these non-GAAP
financial measures only in conjunction with the comparable GAAP
financial measures. These non-GAAP measures are not in accordance with
or a substitute for
The Company's future period guidance in this release includes adjustments for items not indicative of the Company's core operations. Such adjustments are generally expected to be of a nature similar to those adjustments applied to the Company's historic GAAP financial results in the determination of the Company's non-GAAP diluted earnings per share. Such adjustments, however, may be affected by changes in ongoing assumptions and judgments as to the items that are excluded in the calculation of non-GAAP adjusted net income and adjusted diluted earnings per share, as described in this release. The exact amount and probable significance of these adjustments, including net acquisition costs, net securities litigation defense costs, and other non-run-rate expenses, are not currently determinable without unreasonable efforts, but may be significant. These items cannot be reliably quantified or forecasted due to the combination of their historic and expected variability. It is therefore not practicable to reconcile this non-GAAP guidance to the most comparable GAAP measures.
FINANCIAL TABLES ATTACHED
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CONSOLIDATED STATEMENTS OF INCOME |
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(In thousands, except per share data) |
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(Unaudited) |
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Three Months Ended |
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| 2017 | 2016 | |||||||
| Revenues: | ||||||||
| Software license and hardware | $ | 12,800 | $ | 14,789 | ||||
| Software related subscription services | 23,906 | 19,875 | ||||||
| Total software, hardware and related | 36,706 | 34,664 | ||||||
| Support and maintenance | 41,116 | 38,007 | ||||||
| Revenue cycle management and related services | 21,403 | 21,053 | ||||||
| Electronic data interchange and data services | 23,312 | 22,124 | ||||||
| Professional services | 8,385 | 6,357 | ||||||
| Total revenues | 130,922 | 122,205 | ||||||
| Cost of revenue: | ||||||||
| Software license and hardware | 5,373 | 7,120 | ||||||
| Software related subscription services | 10,430 | 9,087 | ||||||
| Total software, hardware and related | 15,803 | 16,207 | ||||||
| Support and maintenance | 7,623 | 6,568 | ||||||
| Revenue cycle management and related services | 15,361 | 14,231 | ||||||
| Electronic data interchange and data services | 13,158 | 12,763 | ||||||
| Professional services | 7,224 | 7,046 | ||||||
| Total cost of revenue | 59,169 | 56,815 | ||||||
| Gross profit | 71,753 | 65,390 | ||||||
| Operating expenses: | ||||||||
| Selling, general and administrative | 42,977 | 40,581 | ||||||
| Research and development costs, net | 19,989 | 18,224 | ||||||
| Amortization of acquired intangible assets | 2,047 | 2,704 | ||||||
| Restructuring costs | — | 3,753 | ||||||
| Total operating expenses | 65,013 | 65,262 | ||||||
| Income from operations | 6,740 | 128 | ||||||
| Interest income | 9 | 8 | ||||||
| Interest expense | (677 | ) | (1,013 | ) | ||||
| Other expense, net | (22 | ) | (87 | ) | ||||
| Income (loss) before provision for (benefit of) income taxes | 6,050 | (964 | ) | |||||
| Provision for (benefit of) income taxes | 2,154 | (317 | ) | |||||
| Net income (loss) | $ | 3,896 | $ | (647 | ) | |||
| Net income (loss) per share: | ||||||||
| Basic | $ | 0.06 | $ | (0.01 | ) | |||
| Diluted | $ | 0.06 | $ | (0.01 | ) | |||
| Weighted-average shares outstanding: | ||||||||
| Basic | 62,636 | 61,179 | ||||||
| Diluted | 62,643 | 61,179 | ||||||
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CONSOLIDATED BALANCE SHEETS |
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(In thousands, except per share data) |
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(Unaudited) |
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| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 23,337 | $ | 37,673 | ||||
| Restricted cash and cash equivalents | 5,915 | 4,916 | ||||||
| Accounts receivable, net | 81,605 | 83,407 | ||||||
| Inventory | 100 | 158 | ||||||
| Income taxes receivable | 2,303 | 2,679 | ||||||
| Prepaid expenses and other current assets | 18,283 | 17,969 | ||||||
| Total current assets | 131,543 | 146,802 | ||||||
| Equipment and improvements, net | 27,832 | 27,426 | ||||||
| Capitalized software costs, net | 17,948 | 13,607 | ||||||
| Deferred income taxes, net | 12,266 | 11,265 | ||||||
| Intangibles, net | 79,165 | 69,213 | ||||||
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202,272 | 185,898 | ||||||
| Other assets | 18,883 | 19,010 | ||||||
| Total assets | $ | 489,909 | $ | 473,221 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 5,007 | $ | 4,618 | ||||
| Deferred revenue | 51,471 | 52,383 | ||||||
| Accrued compensation and related benefits | 14,388 | 24,513 | ||||||
| Income taxes payable | 2,265 | 405 | ||||||
| Other current liabilities | 32,618 | 46,775 | ||||||
| Total current liabilities | 105,749 | 128,694 | ||||||
| Deferred revenue, net of current | 1,438 | 1,394 | ||||||
| Deferred compensation | 6,386 | 6,629 | ||||||
| Line of credit | 45,000 | 15,000 | ||||||
| Other noncurrent liabilities | 17,148 | 16,461 | ||||||
| Total liabilities | 175,721 | 168,178 | ||||||
| Commitments and contingencies | ||||||||
| Shareholders' equity: | ||||||||
| Common stock | ||||||||
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634 | 625 | ||||||
| Additional paid-in capital | 233,742 | 228,549 | ||||||
| Accumulated other comprehensive loss | (372 | ) | (358 | ) | ||||
| Retained earnings | 80,184 | 76,227 | ||||||
| Total shareholders' equity | 314,188 | 305,043 | ||||||
| Total liabilities and shareholders' equity | $ | 489,909 | $ | 473,221 | ||||
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NON-GAAP FINANCIAL MEASURES |
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(In thousands, except per share data) |
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RECONCILIATION OF NON-GAAP DILUTED EARNINGS PER SHARE |
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Three Months Ended |
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| 2017 | 2016 | |||||||
| Income (loss) before provision for income taxes - GAAP | $ | 6,050 | $ | (964 | ) | |||
| Non-GAAP adjustments: | ||||||||
| Acquisition costs, net | 549 | 2,736 | ||||||
| Amortization of acquired intangible assets | 5,448 | 5,732 | ||||||
| Amortization of deferred debt issuance costs | 269 | 269 | ||||||
| Restructuring costs | — | 3,753 | ||||||
| Securities litigation defense costs, net of insurance | 446 | 364 | ||||||
| Share-based compensation | 2,041 | 1,156 | ||||||
| Other non-run-rate expenses* | 263 | 401 | ||||||
| Total adjustments to GAAP income before provision for income taxes: | 9,016 | 14,411 | ||||||
| Income before provision for income taxes - Non-GAAP | 15,066 | 13,447 | ||||||
| Provision for income taxes | 4,595 | 4,101 | ||||||
| Net income - Non-GAAP | $ | 10,471 | $ | 9,346 | ||||
| Diluted net income per share - Non-GAAP | $ | 0.17 | $ | 0.15 | ||||
| Weighted-average shares outstanding (diluted): | 62,643 | 61,676 | ||||||
* For the three months ended
View source version on businesswire.com: http://www.businesswire.com/news/home/20170801005812/en/
Chief
Financial Officer
JArnold@nextgen.com
or
Investors:
443-213-0500
Source:
News Provided by Acquire Media